8 Tips to Reduce Shipping Costs for Small Businesses

July 12, 2021 eCommerce TipsEntrepreneurs

Are you looking for ways to reduce shipping costs for your small business? The Covid-19 pandemic has pushed several people to opt for online shopping. Due to this, many small businesses are currently engaged in ecommerce business to explore the massive opportunities on the internet and get the cash in this growing market.

Although an online business offers a plethora of options, it is limited by shipping cost, which is considered one of the most significant expenses of ecommerce stores and small businesses. In fact, a lot of shoppers are often hesitant to place the order once they see expensive shipping costs. This is why it is important to find a balance in the cost of shipping without hurting your business or profit. Read on to find out the top tips to reduce shipping costs for small businesses.

Negotiate Shipping Rates with Carriers

You have to understand that it is not only the giant retailers that have access to discounted shipping rates. Although the fact is that higher shipping volume translates to more volume discounts, but the reality is that small businesses can also benefit from negotiating lower rates and comparing prices.

For instance, if one carrier gives you their price rate, use it as leverage to fast-track your negotiations. Also, you can share your sales projections with several shipping companies if you are expecting an increase in your orders in the coming months due to demand or seasonality. Ensure that you obtain quotes from several carriers instead of opting for the first offer.

Prepay for Shipping to Reduce Total Costs

Several shipping companies enable you to prepay for shipping labels. You can purchase one set of shipping labels in the early stage and attach them to packages. This process will allow you to reduce shipping costs and also save time. Note that this strategy will enhance your bottom line to know your shipping costs before time. It is also beneficial if you can anticipate loads of orders of the exact dimensions and weight.

Repackage Your Orders to Precise Product Dimensions

Always understand that heavy and larger packages will increase your final costs if you’re not making payment for flat-rate shipping. Thus, ensure that you focus more on the package dimensions. Use boxes that best fit the product’s size that you’re shipping – otherwise, you will pay more for additional dimensional package weight. Even if it implies storing multiple sized-boxes, it could enable you to cut costs in the long run.

In other terms, the packaging for a set of products should best fit the products or at least be slightly larger than it. Another way is to eliminate the use of boxes and go for more cost-effective shipping merchants. For instance, if your business often ships less fragile, smaller items like clothing, opt for poly mailer bags or mailer envelopes.

Explore Third-Party Shipping Insurance

It is essential to have shipping insurance for your orders, depending on your business. If you intend to consider this, understand that most shipping companies usually overcharge on insurance. To determine if you require shipping insurance, consider the average worth of your shipments. It is better to opt for shipping insurance if the loss of one shipment could impact your bottom line. On the other hand, if your shipment or average product is a moderately low cost, the shipping insurance may not be essential.

Include Shipping Costs in the Upfront Price

Several online businesses won’t include the shipping price in the checkout section. Instead, they will integrate part or all of the shipping expenses into the upfront price. Also, experts believe that online shoppers prefer platforms that promote free shipping. This technique makes it easy to upgrade to free shipping without having to pay for the entire bill. If you decide to sell products set up by an affiliate or pursue dropshipping, then you can include the shipping costs into the price.

Consider Hybrid Services

Another effective way to reduce shipping costs for your small business is to use hybrid services like SmartPost by FedEx and SurePost by UPS. These services will pick your packages before transferring them to other big carriers like FedEx or UPS. The effect is that these packages end up at the closest delivery office and are delivered by local mailmen.

Reduce Small Business Shipping Costs with a Shipping Platform

The days of driving to the post office to get a package are overdue to the rise of several online shipping platforms. These platforms have made it easier to manage the shipping process effectively and streamline orders. Another thing is that they allow you to compare rates, resulting in the reduction of your shipping costs.

Get Discounted Shipping Rates

All shipping companies offer pricing discounts depending on the shipping volume, and the important thing is that you don’t have to ship massive orders per month to obtain these discounts. You can also negotiate volume discounts to gain the trust of a shipping carrier. The truth is that shipping more packages will translate to better rates.


Reducing shipping rates for small businesses will facilitate the expansion and growth of the business. Ensure that you apply these strategies to reduce the shipping rates and divert the resources into other essential things.

For more information about us or if you will like to know more about the products and services we provide, give us a call today at Fulfillman. We provide a wide range of services including Drop Shipping services, China sourcing, Warehouse fulfillment, Third Party Logistics, Product Photography, and many more. Our trusted professional team will be on ground to speak with you and discuss your available options. With us, you are certain to get quality and excellent services that give 100% customer satisfaction.